Financial Stability At Any Price May Be Too Expensive

February 11, 2014

Written by Dodge, David

Policymakers are focused on financial stability at expense of
effectiveness and costs. Since the financial crisis of 2007-2008, almost
all of the attention to the financial sector has been aimed at
answering the question: “How do we make the financial sector more
stable?” or less productively but unfortunately more politically
salient: “How do we avoid government bailouts of banks?” Written by
David Dodge.